What is the npv of the loan

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A small business received a five-year $1,020,000 loan at a subsidized rate of 3 percent per year. The firm will pay 3 percent in annual interest and will pay the principal at the end of the five years. If the market interest rate on similar loans is 6 percent per year, what is the NPV of the loan? (Ignore taxes.)

Reference no: EM133558077

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